Legal

Financial management

The Foundation’s investment portfolio is handled by professional fund managers who specialise in dealing with the charitable sector.  They provide quarterly valuations and make an annual report to the trustees. In addition, they organise regular seminars and training events to which the trustees are invited.  The current investment objectives of the trustees are to maintain the real value of the portfolio and thereafter to generate as much investment income as possible to finance the awards made by the Foundation.

Management accounts for the Foundation are presented at each trustees’ meeting and audited financial statements are produced for each financial year.  The latter are presented at the annual general meeting for approval.  The financial statements are filed with the Charity Commission and the Registrar of Companies.

Charity Commission

Conflicts of interest

Trustees have a legal duty to act in the charity’s best interests when making decisions as a Trustee. If there is a decision to be made where a trustee has a personal or other interest, this is a conflict of interest and the Trustee concerned will not be able to comply with that legal duty unless certain steps are followed.

For example, a Trustee would have a conflict of interest if the charity is thinking of making a decision that would mean:

  • The Trustee could benefit financially or otherwise from the charity either directly or indirectly through someone the Trustee is connected to
  • The Trustee’s duty to the charity competes with a duty or loyalty s/he has to another organisation or person

Governance

Principles of good Governance observed by PPEF

The principles set out good practice which are closely linked with the responsibilities of charity Trustees.

An effective board will provide good governance and leadership by

  • Understanding their role
  • Ensuring delivery of organisational purpose
  • Working effectively both as individuals and as a team
  • Exercising control
  • Behaving with integrity
  • Being open and accountable
Full details - here

Role of the trustees

Charity Trustees are the people who serve on the governing body of a charity. They may be known as Trustees, Directors, Board Members, Governors or Committee Members. Charity Trustees are responsible for controlling the management and administration of a charity.

Their responsibilities and duties are summarised below. The PPEF Trustees serve as volunteers and receive no payment for their work.

Charity Trustees come from all walks of life, and are united by their wish to create positive change in society. Most people are eligible to serve as Trustees. The work of a Trustee should be rewarding and enjoyable and an opportunity to serve the community while learning new skills.

Management accounts for the Foundation are presented at each trustees’ meeting and audited financial statements are produced for each financial year.  The latter are presented at the annual general meeting for approval.  The financial statements are filed with the Charity Commission and the Registrar of Companies.

Trustees and their responsibilities

Charity Trustees are the people who serve on the governing body of a charity. They may be known as Trustees, Directors, Board Members, Governors or Committee Members. The principles and main duties are the same in all cases.

  • Trustees have and must accept ultimate responsibility for directing the affairs of a charity, and ensuring that it is solvent, well-run, and delivering the charitable outcomes for which it has been set up.

Compliance – Trustees must:

  • ensure that the charity complies with charity law, and with the requirements of the Charity Commission as regulator; in particular ensure that the charity prepares reports on what it has achieved and annual returns and accounts as required by law
  • ensure that the charity does not breach any of the requirements or rules set out in its governing document and that it remains true to the charitable purpose and objects set out there
  • comply with the requirements of other legislation and other regulators (if any) which govern the activities of the charity
  • act with integrity, and avoid any personal conflicts of interest or misuse of charity funds or assets

Duty of prudence – Trustees must:

  • ensure that the charity is and will remain solvent
  • use charitable funds and assets reasonably, and only in furtherance of the charity’s objects
  • avoid undertaking activities that might place the charity’s endowment, funds, assets or reputation at undue risk
  • take special care when investing the funds of the charity, or borrowing funds for the charity to use


Duty of care – Trustees must:

  • use reasonable care and skill in their work as Trustees, using their personal skills and experience as needed to ensure that the charity is well-run and efficient


What should I do before I become a Trustee?

The short answer – You should take all reasonable steps to find out as much as you can about the charity, and about what will be expected of you as a trustee.

View our Trustees